Can you file for bankruptcy to get rid of student loans?

Can you file for bankruptcy to get rid of student loans?

While you can file for bankruptcy to get rid of your student loans, it’s a lot harder than filing for bankruptcy for other types of debt. That’s because you have to prove your student loans cause you undue hardship under current bankruptcy law, adding another step to your case.

How can I get my student loan discharged?

To find out the test used in your jurisdiction, talk to a local bankruptcy attorney. If you want to try to discharge your student loan in bankruptcy, you must file an adversary proceeding to determine dischargeability with the bankruptcy court. But that’s not all.

What can I do with my student loan debt?

If you can’t discharge your student loans, Chapter 13 bankruptcy provides some other ways that can help. For example, you’ll likely be able to pay a reduced amount during your Chapter 13 plan —although you’ll be on the hook for whatever amount is left after your repayment period ends.

What happens to my student loans if I file Chapter 7?

If a chapter 7 is filed, you’ll get a six month reprise (or longer depending on how long it takes to complete your 7). If you file a 13, you could have three to five years with no student loan payment.

How can I discharge my student loan debt?

Succeeding in having student loans discharged through bankruptcy involves filing Chapter 7 or Chapter 13 and then taking an additional step, which is filing an “adversary proceeding,” or AP. The AP must be filed to have your student loans considered for discharge.

How can I get rid of my student loans?

Step 1: Check if your loans might qualify as an undue hardship. Step 2: Meet with a bankruptcy lawyer to discuss your case. Step 3: File for Chapter 7 or Chapter 13 bankruptcy. Step 4: Start an adversary proceeding. Step 1: Check if your loans might qualify as an undue hardship.

Are there defenses to paying off student loan debt?

You might have defenses to payment of your student loan debt, particularly if you attended a vocational or trade school. Examples include breach of contract, unfair or deceptive business practices, or fraud. If you succeed, you won’t owe the debt at all, making the dischargeability issue moot.

How can I get rid of my private student loan?

The best way to reduce or eliminate your private student loans might be a debt settlement. It would be rare for a debt settlement company to attempt to negotiate a settlement for a private student loan. But, there are some student loan attorneys that specialize in such settlements.

What happens to student loan debt in Chapter 7?

Unlike Chapter 13, Chapter 7 has no repayment plan. Some debts are fully discharged, while others are not. A January 2020 bankruptcy court decision discharged the $221,385.49 student loan debt of a U.S. Navy veteran, stemming from his Chapter 7 proceeding.

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